Danny Blanchflower quits Labour's economic advisory council

Shruti Tripathi Chopra
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Economist, and former member of the Bank
Danny Blanchflower is a former member of the Bank of England’s monetary policy committee (Source: Getty)

Top economist Danny Blanchflower has resigned from Labour's economic advisory council.

Announcing his resignation on Twitter, the former monetary policy committee member said he's winding up the review of the Bank of England too.

Shortly after the referendum result was announced last Friday, Blanchflower told City A.M. that the Leave vote wil spell the end of Prime Minister David Cameron, chancellor George Osborne and Bank of England governor Mark Carney.

Cameron announced his resignation on Friday saying the country "requires fresh leadership" following the Leave vote.

​Blanchflower, who is now at Dartmouth College in the US, said: "Brexit will spell the end of David Cameron, George Osborne and Mark Carney because they just told us a Leave vote would be a disaster for Britain but didn't tell us what they would do in the event of Britain leaving the EU."

Read more: This is the end of Cameron and Osborne, says Danny Blanchflower

He said that a drop in the pound, which tumbled to lows not seen since 1985, goes to show that Britain is now in the grips of "an economic crisis".

"The monetary policy committee needs to have an emergency meeting with central banks around the world to ensure liquidity is ok and banks remain open," he added.

Blanchflower warned measures need to be taken to prevent the pound falling another 10-20 per cent and FTSE falling 10 per cent or more. He also said that interest rate cuts could be on the cards.